Turn Retirement Savings Into Business Capital with a ROBS 401(k)
Use a ROBS structure to quickly secure funds for your business without having to take out a loan, and avoiding early withdrawal penalties.
What is ROBS?
The Rollover as Business Startups (ROBS) structure is a specialized arrangement that allows individuals to use retirement funds—typically from a 401(k) or traditional IRA—to finance a new or existing business without incurring early withdrawal penalties or taxes. In a ROBS setup, the individual rolls over retirement funds into a new 401(k) plan sponsored by a C Corporation they establish.
The plan then purchases stock in the corporation, providing the business with capital to operate or expand. While ROBS can be a powerful way to fund a business, it is complex and must follow strict IRS and Department of Labor rules to avoid triggering audits or disqualification. It’s essential to work with experienced professionals to ensure compliance.
Why Choose IRA Financial As Your ROBS 401(k) Provider?
A Rollover as Business Startups (ROBS) solution is the only legal way to use your 401(k) for startup or existing businesses. However, a poorly structured ROBS can lead to costly tax penalties and personal liability. Using IRA Financial as your ROBS 401(k) provider gets you expert guidance to keep your plan compliant while your investment grows—tax-deferred and penalty-free. No loans, no debt, no unnecessary hurdles—just a streamlined, IRS-approved way to fund your business while protecting your personal assets.
No commissions or surprise charges.
Live chat and phone service available during business hours.
Make other alternative investments.
Serving investors in all 50 states.
Experience with Navigating IRS Rules & Regulations.
Administration services to keep you IRS compliant.
Simple Transparent Pricing
We believe investing for retirement shouldn’t come with complicated fee structures or fine print. You keep more of what you earn, and you stay in control every step of the way.
ROBS 401k
$1200
/ annually
- $3500 setup fee
- Best plan to grow or fund your business tax free!
- Earn a salary
- Sell your business tax free
- Generate tax-free income
- Guaranteed IRS audit protection
How to Open a ROBS 401(k)
Opening a ROBS structure is easy when done right. Our team handles the setup so you can roll over your retirement funds without penalties, meet IRS requirements, and focus on building your business.
01
Open Your Account
Opening a self-directed retirement account is simple. 
Submit your online account application in just a few minutes. Get Started
02
Finish your application with a ROBS specialist
Our experts will guide you through the final steps, ensuring everything is set up correctly and fully compliant.
03
Establish a C Corporation and New 401(k)
As your ROBS 401(k) provider, we’ll set up a C Corp and create a qualified plan for funding your business on your behalf.
The Benefits of a ROBS 401(k)
Tax-Deferred
Access your retirement savings without early withdrawal penalties or taxes to start or grow your business.
No Loans, No Debt
You’re funding your business with your own money, avoiding bank loans, high interest rates, or personal credit risks.
Ownership and Control
Unlike investors or lenders, a ROBS doesn’t require giving up equity or control of your business.
Stronger Cash Flow
Without loan payments or investor obligations, your business keeps more of its revenue early on, improving stability and growth potential.
Covers All Costs
Unlike SBA loans or traditional financing, ROBS funds can cover startup costs, payroll, marketing, real estate, inventory, or even franchise fees.
ROBS 401(k) vs. Other Funding Options
ROBS | SBA Loan | Investors | |
Book a Consultation
Schedule a free consultation with a member of our team to explore how opening a self-directed retirement account can unlock your ability to invest tax-free in a variety of alternative assets.
ROBS 401(k) Frequently Asked Questions
Answers to some of the most commonly asked questions about the ROBS structure.
Rollover as Business Startups (ROBS) is a method of funding a small business or franchise using your retirement funds. In fact, ROBS is the only legal way to use your retirement funds to invest in yourself without incurring tax penalties.
Any retirement account that allows rollovers into a traditional 401(k) plan, including traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, and 457(b) plans. Roth IRAs cannot be used since they are not eligible for rollover into a traditional 401(k).
The business must be active, for-profit, and federally legal. ROBS cannot be used for businesses that only generate passive income (such as rental properties with no active management).
- Real estate businesses qualify, but at least 50% of assets must be actively managed real estate (not passive investments).
- Personal-use property is not allowed.
Yes! ROBS funds can be combined with personal savings, co-owners, investors, or even an SBA loan to start or grow a business.
Yes. Under the ROBS structure, the owner must be an employee of the business. The salary must be reasonable for the role and industry to follow IRS guidelines.
Each year, IRS Form 5500 must be filed to report the value of 401(k) plan assets. This filing is required for IRS compliance.
Yes. The business must undergo an annual independent valuation to determine the fair market value of the stock held by the 401(k) plan. This valuation is required for Form 5500 reporting.
See What Our Clients Have to Say
I decided to open a Self-Directed IRA because I wanted to invest in real estate projects. Also, having control of my money was a big motivating factor as well. Being able to decide where and when to invest has been very successful for me. All the real estate projects I have selected have been solid investments. I have recommended IRA Financial to friends and family.
I researched several companies before deciding to go with IRA Financial. I am completely happy with my choice. I appreciate that I can ask questions about rules prior to making an investment to make sure I am compliant. I like that I can invest in traditional investments, but also real estate. I have invested in land, rentals, and home flips. Whenever I am speaking with self-employed individuals, I bring up IRA Financial and the idea of opening a Solo 401(k). I think it is a no-brainer for someone who is self-employed and wish I had opened mine up sooner.
I've looked at all of the participants in this space and IRA Financial was the clear choice. They were the easiest to work with, answered all my questions and concerns prior to me taking the steps to open the account. The process is straight forward and there are no surprises. My investments in Real Estate have been largely successful. IRA Financial is professional, has great support, and put the customer in the driver's seat.
Ready to Invest in Your Future?
Whatever strategy you plan for retirement, we do it all. Build your retirement with a Self‑Directed IRA designed for alternative and non traditional investments.
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